First Majestic

25 posts / 0 new
Last post
#1 Thu, Jan 2, 2020 - 6:35pm
silverseeker
Offline
Joined: Oct 27, 2011
1448
13823

First Majestic

I'd like to open this thread and list a few catalysts for 2020. I am hoping there will be many additional posts with further details, and I look forward to reading this convenient rolling discussion!

In reference to the recent Seeking Alpha article and Keith's interview; after which I spoke with Mark Corruthers, (Investor Relations); and we reviewed some of the slides in the Nov 28th Corporate Presentation.

  • First Majestic is now over 90% Precious Metals with San Dimas and Santa Elena producing 20 Million AgEqvOz @ ~ $7.00 AISC.
  • Gold production is now over 30,000 ounces a quarter. If you are a long term shareholder, you know this was never the case up until the San Dimas and Santa Elena acquisitions. How many Gold Mining juniors are diluting shares as we speak to raise cash for a 120K ounce/year gold mine operation? I don't think 'the market' has priced this in. If Gold only hits $1600 and Silver $22 this year; you are looking at > $300M in free cash flow or ~ $30/share at ~20X multiple. The decade long chart is going to look pretty insane.
  • First Majestic shares are held in a large proportion of mining mutual funds and as a premier 'Primary Silver' leverage stock. If the sector sees inflows, AG shares are bought both directly and indirectly.
  • First Majestic owns all the land surrounding the Silvercrest Las Chispas project. Refer to pages 23-24 of the presentation. Note the drill results down near the Santa Elena Mine @ Ermitano are very similar to many of the 'world class' intercepts published by Silvercrest but First Majestic has yet to publish an initial resource model. Four surface drill rigs were active at the Ermitaño project during the last quarter. In addition, above ground earthwork activities began to prepare the area for the installation of surface facilities and portal construction. The Company is expected to release a Preliminary Economic Assessment study and updated Resource estimates on the Ermitaño project by the end of the first quarter in 2020.
  • First Majestic also has an exploration drill on the Los Hernandez claim, along the Las Chispas property line... First Majestic does not need to drill off a resource to raise cash to build a Plant up there; as Silvercrest is already preparing to build one. I do not think there is any danger of First Majestic 'hollowing out' their resource base... just highlighting the untapped potential of one of their producing properties and the obvious potential for another acquisition.

The above is clipped from recent press releases. I didn't include any of the cost saving operations; such as the new HIG mills and switch over to NatGas and roaster work at La Encantada. Sometime during the 2020s decade, I believe Silver can rally to > $100/ounce, and AG shares can 2:1 split and likely still reach > $100/share... a 20 bagger for the 2020s.

That's my opener, and kick off for the decade.

A grain of sand in the gearbox of tyranny

Become member and subscribe to Turd's Vault

Contribute

Donate Shop

Recent Comments